Central asian countries: Competitiveness and prospects for cooperation and integration

Abstract

This article provides an analysis of the economies of Central Asia in the post-Soviet period. The method of periodization allowed the stages of reforming these economies and the difficulties of their transitions to the market to be highlighted. The authors used a systematic approach, the selection of necessary information, and logical inferences. It is demonstrated that the economic potential and the narrowness of the sales markets in these countries are unattractive for investors. Aging populations, high youth unemployment, and rampant migration complicate the socio-demographic situations. The nationalistic egoism of the business elite, which has grown stronger in the years since independence, exerts significant pressure on political power. An analysis of the indicators of the global competitiveness of selected countries leads to the notion that the national economies of Central Asia may show growth in the future. The region has a competitive advantage because of: the reduced costs of transport and logistics; a similar culture of consumption and customer demands; comparability of household income; and greater demand for products within the region. Noting attempts of the countries in the region at integration, the authors outline intensifying contradictions and conflicts that include: ethnic enclaves, border problems, the distribution and regulation of water resources, trade, and customs barriers. An important outcome of this study is the identification of opportunities for regional cooperation and the format for expanding integration ties between Central Asian countries. These countries represent a single economic space, and the use of the entire range of relations - from single agreements to international ones - will benefit these countries as a large region in the global market.